ACE Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component ACE (NYSE:ACE) will unveil its latest earnings on Tuesday, October 23, 2012. ACE is a global provider of property and casualty insurance and reinsurance products to individuals and businesses.

ACE Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.82 per share, a decline of 18% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.87. Between one and three months ago, the average estimate moved down. It has risen from $1.70 during the last month. Analysts are projecting profit to rise by 13.5% compared to last year’s $7.91.

Past Earnings Performance: Last quarter, the company beat estimates by 25 cents, coming in at profit of $2.17 a share versus the estimate of net income of $1.92 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit fell 46% to $328 million (96 cents a share) from $607 million ($1.77 a share) the year earlier, but exceeded analyst expectations. Revenue fell 7.7% to $3.93 billion from $4.25 billion.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $10.12 (14.6%), from $69.17 to $79.29. The stock price saw one of its best stretches over the last year between September 26, 2012 and October 5, 2012, when shares rose for eight straight days, increasing 3.9% (+$2.92) over that span. It saw one of its worst periods between July 3, 2012 and July 11, 2012 when shares fell for six straight days, dropping 6.2% (-$4.65) over that span.

Analyst Ratings: With 16 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 10.4% in the third quarter of the last fiscal year, 1.6% in the fourth quarter of the last fiscal year and 9.9%in the first quarter before dropping in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $4.29 billion in revenue this quarter, a decline of 1.2% from the year-ago quarter. Analysts are forecasting total revenue of $15.94 billion for the year, a rise of 3.7% from last year’s revenue of $15.37 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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